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Ethics in Procurement – Identifying breach of code

By Sherna Jay
In Procurement Talent Management
Mar 23rd, 2015

We looked up at the code of conduct for Ethical procurement in our last blog post. Today, let’s explore a few examples that show how the code is breached:

Ethical Procurement

Ethical Procurement

Accepting business gifts/favors/hospitalityAccepting or receiving business gifts, entertainment soirée, favors or any kind of hospitality is treated with utmost sensitivity in any corporate environment and is looked upon as an influence to the decision making process. To avoid misconceptions, organizations should implement clear gifts policy or rather a no-gift policy where even the suppliers have to comply apart from the employees.

Bribery & Corruption: While accepting gifts is a kind of bribery; it also includes but is not limited to acts of promising, authorizing any advantage with/from persons associated with decision making process or threatening/extorting services. A common trait found amongst professionals is Nepotism i.e. trading with friends, relatives, favorites or partners to channel payments to government, or employees or self in some cases.

Conflict of Interest: A conflict of interest occurs when a professional interlinks personal interests with business like initiating personal business with a supplier, overlapping procurement duties, performing activities which would create a conflict between the parties, lending or borrowing money from supplier/vendor or abusing power under political/external influence.

An ethical procurement professional must be transparent and fair in all his duties. While dealing with Suppliers/Vendors:

  • Treat all suppliers with equality
  • Avoid any undue abuse of power
  • Refrain from creating any preferences of suppliers
  • Maintain professional confidentiality levels
  • Avoid information leaks

Procurement Professionals must strive to create a business environment with zero-tolerance to unethical/criminal conduct. Any form of slavery, corruption, bribery, conflicts must be dealt with strongly keeping in mind to ensure a better and ethical workplace.

Click on the button below to read the complete Ethical Procurement series.

Read Series


Insights in the above post is collected from: The Chartered Institute of Procurement & Supply – Code of Conduct. Do you notice any such breaches in your professional experience? What did you do about it? Share your comments below.


About "" Has 30 Posts

Sherna is a Senior Marketing & Communications Executive at Zycus. An avid blogger, a maniac editor and an animated colleague; you'll find her tweeting and visualizing new Pizza Treats when she's free.

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